In 20x1, stevens corp. began a new product line of wearable technology that carries a 24-month warranty against manufacturer defects. based on industry experience, stevens expects warranty costs to be an amount equal to approximately 9% of total sales dollars. during 20x1, new sales of this technology totaled $3,000,000. the costs incurred to satisfy warranty claims in 20x1 was $95,000. required: answer the following two questions.

a. what should stevens report as the"warranty expense' balance on its 20x1 income statement?
b. what should stevens report as the warranty liability. balance on its balance sheet at 12/31/x1?

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.